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Romania government to drastically cut spending

de Alina Comanciu
Miercuri, 27 februarie 2008, 12:28 Actualitate

Under the Romania Central Bank and European Commission pressures, the government plans to cut spending with almost one billion euro from the state budget, as the Finance Minister prepares the first state budgetary rectification of the year. The main goal of the government is to maintain the deficit below the Brussels imposed level and but them measure will also control inflation. A decision may be reached on Wednesday.

Romanian PM Calin Popescu Tariceanu announced that the Chancellery is ready to sustain the National Bank, by any means possible. Moreover, the Government plans to discuss some measures that would determine public authorities to spend budget money responsibly.

PM Tariceanu seems to have changed his mind after announcing in January that he will not take into consideration European warnings, urging the government to impose a calculated fiscal policy. Thus, Romania's budgetary deficit set up initially for 2008 is the highest in the last couple of years.

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